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Breaking News Forum Feds announce plan to delay foreclosures at News Forum - AP - The Bush administration, trying to deal with a worsening housing slump, announced a new initiative Tuesday aimed at ...

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Old 02-12-2008, 11:49 AM   #1
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Default Feds announce plan to delay foreclosures

AP - The Bush administration, trying to deal with a worsening housing slump, announced a new initiative Tuesday aimed at helping homeowners about to lose their homes. For qualified homeowners, it will put the foreclosure process on hold for 30 days.



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Old 02-14-2008, 02:41 PM   #2
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Surplus availability of foreclosed homes is depressing the market...

Home prices in steepest quarterly drop
February 14 2008: Realtors say prices fell faster and in more places over last part of 2007.
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Home prices continued their plunge during the last three months of 2007, setting a real estate trade group's record for the biggest-ever quarterly drop. The national median price drop of 5.8%, to $206,200 from $219,300, was the steepest ever recorded by the National Association of Realtors (NAR), which has been compiling the report since 1979.

NAR officials blamed the liquidity squeeze that began last summer for much of the drop. Home buyers had trouble obtaining mortgage financing, especially for more expensive properties. "The continuing crunch in the jumbo loan market that began in August has disproportionately reduced the number of transactions in higher price ranges," said Lawrence Yun, NAR's chief economist, in a statement. Fewer expensive homes were sold, bringing down median prices.

"California, south Florida, D.C., many of the high-cost markets are reflecting that," said Walter Molony, a spokesman for NAR. Each of the four U.S. regions recorded losses compared with the fourth quarter of 2006. The West took the worst hit, at 8.7%. Prices dropped 4.8% in the Northeast, 5.4% in the South and 3.2% in the Midwest.

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Old 03-06-2008, 11:49 AM   #3
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Where's that plan to delay foreclosures?

Foreclosures hit all-time high
March 6, 2008: Over 900,000 borrowers are losing their homes, and a record number of home owners are behind on payments. Rescue efforts have not reversed the default trend.
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More home owners than ever are losing the battle to make their monthly mortgage payments. Over 900,000 households are in foreclosure according to a survey by the Mortgage Bankers Association, representing 2% of all mortgages. That's the highest rate in the report's quarterly history. Another 381,000 households, or 0.83% of borrowers, saw the foreclosure process started during the quarter, which was also a record.

Additionally, the number of mortgage borrowers who were over 30 days late on a payment in the last three months of 2007 is at its highest rate since 1985. "Declining home prices are clearly the driving factor behind foreclosures, but the reasons and magnitude of the declines differ from state to state," said Doug Duncan, MBA's Chief Economist said in a prepared statement. The foreclosure rates for prime and subprime adjustable rate mortgages both more than doubled compared with a year ago, from 0.41% for prime ARMs to 1.06% and from 2.70% for subprime ARMs to 5.29%.

But it was subprime ARMs that contributed most heavily to the nation's soaring foreclosure rates. Many of these loans come with low introductory rates that reset higher, often to unaffordable levels, in two or three years. Although they represent only 7% of all outstanding mortgage loans, they accounted for 42% of foreclosure starts during the quarter. Delinquencies stood at 5.82% of outstanding mortgages, up from 5.59% during the three months ended September 30, 2007, according to the MBA. In the last quarter of 2006, the rate was 4.95%.

"In states like Ohio and Michigan, declines in the demand for homes due to job losses and out-migration have left those looking to sell their homes with fewer potential buyers, particularly with the much tighter credit restrictions borrowers now face," said Duncan. "In states like California, Florida, Nevada and Arizona, overbuilding of new homes created a surplus that will take some time to work through."

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Old 04-04-2008, 05:30 AM   #4
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Legal Steps to Protect Yourself From Foreclosure...

Legal Steps to Prevent Foreclosure
April 3, 2008 - One Victim of Predatory Lending Got Legal Help to Refinance and Protect Her Home
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Shelia Cruz thought she had found a small piece of the American dream, her own home in Staten Island, N.Y. But what she got was a terrifying headache that would take almost three years to quell. It started in 2004, as she readied to plunk down $30,000 of hard-earned savings for a down payment on a new home. Much to her surprise, a mortgage broker told her she could keep her money and borrow the entire purchase price of a $400,000 townhouse.

That seemed like a lot of money for a single mother making about $50,000 a year, but Cruz was prepared to believe. She trusted the broker, a friend of a friend, who told her that her payments would be $2,000 a month and over time would likely go down. So she signed the mortgage papers and moved in. It was about six months later that she began to have her doubts. She read the documents carefully. They called for a sizeable boost in the interest rate after five years. They revealed that she was paying only interest and none of the principal that would eventually give her ownership of her home. And at the end of 30 years, she would have to come up with an additional $50,000.

Nobody had explained any of this to Cruz, and she suddenly realized that she was in trouble. It was tough enough to meet the monthly payments of $2,000. If they went up at all, she could go into default. "I realized, 'I'm going to lose the house,'" she said.

Like untold thousands of American homeowners in recent years, Cruz was a victim of predatory lending: The practice of luring borrowers into mortgages that they cannot afford or even hope to understand. Many such victims never recover, losing their homes to lenders in foreclosure proceedings. But others turn their misfortune around, getting out from under bad loans to save their house and home. How do they do it?

More ABC News: Legal Steps to Protect You From Foreclosure
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Old 04-29-2008, 05:33 AM   #5
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Mortgage relief not keeping up with foreclosures...

Housing relief efforts slow as pace of foreclosures rise
April 28, 2008: Hope Now reports that it has helped keep over a half a million home owners out of foreclosure this year. Critics say that still isn't enough.
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The pace of housing rescue efforts slowed in the first quarter of the year, according to a new report, while the number of people losing their homes to foreclosure skyrocketed during the same period. More than a half million at-risk home owners had their loans reworked during the first three months of the year, according to Hope Now, the coalition of mortgage lenders, servicers, investors and community advocates put together to help ease the foreclosure crisis. Nearly 1.4 million homeowners have gone through some sort of loan workout since July.

But the effort is not keeping pace with the rate of foreclosures. "Unless you think the foreclosure problem [is bottoming out], the deceleration in workouts might be considered a disappointment," said economist Jared Bernstein of the Economic Policy Institute. He doesn't think that the mortgage crisis has hit its nadir yet.

"All the signs indicate that we're still headed for the bottom," said Bernstein, who is the author of Crunch: Why Do I Feel so Squeezed?. "You definitely want to see these workouts ramping up at a higher rate." The administration-backed coalition says that through the end of March it helped 503,000 homeowners avoid foreclosure. That's up just 6% from the roughly the 473,000 borrowers it helped in the last quarter of 2007 - and a notable slowdown from the 20% increase in the number of people Hope Now helped in 2007's third quarter.

Meanwhile, the number of homes lost to bank repossessions during the first three months of 2008 totaled 205,207, up 36% from 151,403 a quarter earlier, according to Hope Now. "Hope Now is helping some people," said Bernstein, "but not enough to hasten the [housing] correction along. It's a small piece of the puzzle."

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Old 07-08-2008, 03:58 AM   #6
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Mortgage aid plan lookin' good...

Mortgage rescue plan draws Senate support
Jul 8, `08 WASHINGTON - A mortgage rescue plan to save hundreds of thousands of homeowners from foreclosure drew overwhelming Senate support, inching toward passage despite Republican objections.
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The Senate voted 76-10 Monday to advance the bill, a broad array of housing measures including overhauls of the Federal Housing Administration, the Depression-era mortgage insurer, and government-sponsored home loan giants Fannie Mae and Freddie Mac. Its centerpiece is a new $300 billion FHA program to allow debt-ridden homeowners who are currently too financially risky to qualify for government-backed loans to refinance into safer, more affordable mortgages.

The measure is on track for passage by an overwhelming margin, possibly by week's end. It has survived several test votes in the Senate, repeatedly demonstrating that there's enough support for it to override President Bush's promised veto. But Sen. John Ensign, R-Nev., is blocking its progress because Democratic leaders have refused to allow a vote on attaching an $8 billion package of renewable energy tax breaks. Ensign has said he wants the tax incentives to hitch a ride on the housing measure because it has a good chance of being signed into law by Bush.

"This will be the major achievement and accomplishment of this Congress when it comes to dealing with the underlying economic crisis, which is at its heart the foreclosure crisis," said Sen. Christopher J. Dodd, D-Conn., the Banking Committee Chairman who wrote the legislation. Beyond the Senate, the election-year package still faces a tricky path.

More My Way News - Mortgage rescue plan draws Senate support
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Old 07-08-2008, 10:22 PM   #7
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"Gee, I signed the papers, took the property, then read the agreement years later. I thought I made a good investment, now I gots problems. Please bail me out, I am an innocent victim."

Since when does "legal and biding contract" mean if your investment doesn't pan out the way you hoped, the Taxpayers should bail you out?

If her $400,000 townhouse had increased in value to $600,000 she, like many others, would be laughing all the way to the bank. Now it's like "Wow, I made a $400,000 investment with NO MONEY DOWN without reading the terms of the contract."

This bailout legislature the politions are pushing for smacks of the Clintons' multi-billion dollar Whitewater ripoff.

The bankers took bad risks, and the owners/investors took risks.

Now, excuse me if this sounds cold, but I don't want to pay a penny for their mistakes. None of the people who made huge profits offered me a piece of their earnings.
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